Western India remained the key growth engine during Q2 2026, with Mumbai and Pune accounting for 65% of the pan-India absorption, up from 33% a year earlier. Mumbai emerged as the largest contributor, driven by robust leasing activity in Bhiwandi, which accounted for nearly 69% of the city’s absorption. Although Pune remained the second-largest market, its share moderated to 17% from 39% in the previous quarter following strong leasing activity in Q1. Meanwhile, NCR, Bengaluru, Chennai, and Kolkata also registered healthy demand, reflecting broad-based occupier activity across major markets.

Occupier demand was mainly concentrated among core industry segments during Q2 2026. Third-party logistics (3PL) companies led leasing activity with 41% share, followed by Consumer Goods & Services (12%) and Engineering & Manufacturing (11%). Together, these sectors accounted for nearly two-thirds (64%) of the total absorption, while Energy, Automobiles & Auto Components, and Chemicals & Petrochemicals collectively contributed another 22%.

Robust demand continued to support long-term investor interest in the sector. However, amid global uncertainty, institutional investors remained selective, with investments totalling USD 27 Mn in Q2 2026, accounting for just 1% of the total quarterly real estate investments. While investment volumes increased by 25% over the previous quarter, they remained below the level recorded a year earlier.City-wise Absorption

Source: Vestian Research

·       Mumbai led with 5.0 Mn sq ft of absorption, registering 6% quarterly and 459% annual growth. The city has maintained a steady upward trajectory over the past four quarters, supported by sustained leasing activity in  Bhiwandi micro-market. Pune ranked second with 1.8 Mn sq ft; however, absorption declined by 60% from the previous quarter after several large transactions concluded in Q1 2026.

·       NCR recorded 1.2 Mn sq ft of absorption, increasing by 70% quarter-on-quarter and 75% year-on-year. Bengaluru also witnessed a strong recovery, with leasing rising to 1.0 Mn sq ft—the highest since Q2 2025—following a subdued previous quarter.

·       Chennai continued its positive momentum, with absorption rising 17% sequentially and 52% annually to 0.7 Mn sq ft. Hyderabad, in contrast, recorded 0.5 Mn sq ft, declining 34% over the previous quarter while remaining broadly stable year-on-year.

·       Kolkata rebounded strongly during the quarter, with absorption increasing to 0.4 Mn sq ft from a negligible level in Q1 2026 and registering 212% annual growth.

The sector is expected to benefit from the government’s continued emphasis on infrastructure-led growth, reinforced by the Union Budget 2026–27. Higher capital expenditure, alongside ongoing investments in multimodal connectivity, freight corridors, logistics parks, and cold-chain infrastructure, is anticipated to improve supply chain efficiency and support the expansion of modern warehousing facilities. These structural developments are expected to create new growth opportunities for both occupiers and investors.

Shrinivas Rao, FRICS, CEO, Vestian, said, “India’s warehousing sector is undergoing a structural transformation, evolving beyond traditional priorities such as supply chain optimization, operational efficiency, and proximity to demand centres. Sustainability has emerged as a key differentiator, with occupiers increasingly seeking Grade-A green warehouses that align with their ESG commitments and long-term business objectives. Backed by supportive government policies and sustained infrastructure development, this transition is expected to accelerate further, reinforcing the sector’s appeal to both global occupiers and long-term institutional investors.”

Going forward, demand from 3PL, Engineering & Manufacturing, and Consumer Goods & Services is expected to remain the primary driver of leasing activity. Continued investments in multimodal infrastructure, technology-enabled warehousing, and supply chain modernization are likely to sustain occupier demand while gradually strengthening institutional investor confidence in the sector.

With the addition of Patna, Guwahati and Lucknow, ColdStar’s network will span 45 distribution centres across India, enabling the company to serve more than 109,000 pin codes nationwide and strengthen access to emerging consumption markets. The expansion forms part of the company’s broader growth strategy as it continues to invest in capacity closer to emerging consumption markets. ColdStar currently operates over one million square feet of warehousing infrastructure and expects to significantly expand its footprint during the current financial year, in line with growing customer demand across food, retail, healthcare, and quick commerce sectors.

“India’s consumption growth is increasingly being driven by markets beyond the metros, with demand becoming more distributed across the country. Our decision to invest in Patna, Guwahati and Lucknow is rooted in this long-term shift and forms part of our larger national expansion strategy. We are focused on building capacity wherever we see demand emerging, enabling greater proximity to consumption centres, reducing replenishment timelines and helping our clients scale with confidence. More importantly, these investments strengthen our ability to build supply-chain capacity ahead of demand rather than react to it. As supply chains continue to evolve, our objective is to ensure that customers and consumers in emerging markets have access to the same service standards and product availability that have traditionally been associated with Tier I cities,” said Sameer Varma, Executive Director, ColdStar Logistics, commenting on the expansion.

The company has launched a 20,000 sq. ft. facility in Kamrup, Guwahati, which will serve as a gateway to the Seven Sisters region and improve supply-chain access across Assam, Tripura, Mizoram, Manipur, and neighbouring Northeastern states. In Uttar Pradesh, ColdStar has established a 10,500 sq. ft. warehouse in Unnao within the Lucknow-Kanpur Highway cluster, a key consumption and distribution corridor in North India. In Bihar, the company has launched a 5,000 sq. ft. facility in Anisabad, Patna, strategically located along the Grand Trunk Road corridor with access to the Gaighat river route, strengthening connectivity and enabling faster movement of goods across the region. Together, these facilities strengthen ColdStar’s ability to support customers operating across FMCG, dairy, confectionery, processed foods, healthcare, retail and quick-commerce sectors.

For the final quarter (Q4 FY26), standalone revenue from operations concluded at Rs.2,256.84 crore against Rs.2,281.37 crore recorded in the matching quarter of the previous fiscal period. Standalone net profit for the quarter leveled at Rs.258.23 crore, down from Rs.302.14 crore year-on-year, primarily due to localized supply chain re-alignments and competitive margin variations. Quarter-end Profit Before Tax (PBT) reached Rs.339.98 crore, which translated into an individual quarterly Earnings Per Share (EPS) of Rs.3.39 on a face value of Rs.5 per share.

On an annual cumulative basis, CONCOR’s full-year performance showcased top-line stability, with standalone operational revenue rising by 2.2% to achieve Rs.9,059.45 crore. Full-year standalone net profit tracked at Rs.1,221.81 crore, bringing the annual consolidated net profit to Rs.1,245.74 crore over a total consolidated revenue pool of Rs.9,078.97 crore. Representing significant structural strength, the corporation’s year-end net worth climbed to Rs.12,942.35 crore out of a commanding Rs.15,175.66 crore total asset infrastructure base.